In the world of investing, the stakes can be high, especially in the healthcare sector. Eyepoint Pharmaceuticals, with a current stock price around $9.05, presents a mixed bag for potential investors. The company is grappling with significant losses, including an EPS estimate of -3.09 for next year and a profit margin of -1.72. Despite a cash flow of $281.3 million, Eyepoint's free cash flow stands at a troubling -1.6 million, raising concerns about its financial health. Analysts have set target prices ranging from $28.89 to $35.24, suggesting potential upside, but with a short ratio of 10.97, the stock is also facing considerable selling pressure. In contrast, Protalix Biotherapeutics may offer a more stable investment profile, making Eyepoint a riskier bet for those looking to navigate the turbulent waters of pharmaceutical stocks. As traders dive deep into the competitive landscape of the pharmaceutical industry, it's worth considering Eyepoint Pharmaceuticals and Protalix Biotherapeutics as intriguing short-term investment options. Both companies have unique strengths that could appeal to investors looking for quick gains. In this analysis, we'll explore the competitive dynamics between Eyepoint and Protalix, highlighting what makes each company stand out in the crowded market. Stay tuned for insights that could help you make informed investment decisions.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Eyepoint or Protalix is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Eyepoint Pharmaceuticals's Liquidity
Eyepoint Pharmaceuticals
financial leverage refers to using borrowed capital as a funding source to finance Eyepoint Pharmaceuticals ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Eyepoint Pharmaceuticals financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Eyepoint Pharmaceuticals' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Eyepoint Pharmaceuticals' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Eyepoint Pharmaceuticals's total debt and its cash.
Correlation Between Eyepoint and Protalix Biotherapeutics
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Eyepoint Pharmaceuticals together with similar or unrelated positions with a negative correlation. For example, you can also add Protalix Biotherapeutics to your portfolio. If Protalix Biotherapeutics is not perfectly correlated to Eyepoint Pharmaceuticals it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Eyepoint Pharmaceuticals, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Eyepoint Pharmaceuticals and Protalix Biotherapeutics in your portfolio? Please note if you are using this as a pair-trade strategy between Eyepoint Pharmaceuticals and Protalix Biotherapeutics, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between EYPT and PLX for more information.
Going after Eyepoint Financials
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check Eyepoint Pharmaceuticals revenue. Based on the latest financial disclosure, Eyepoint Pharmaceuticals reported 46.02
M of revenue.
This is 99.4% lower than that of the Pharmaceuticals sector and 93.81% lower than that of the
Health Care industry. The revenue for all United States stocks is 99.51% higher than that of Eyepoint Pharmaceuticals. As for Protalix Biotherapeutics we see revenue of 65.49
M, which is 91.18% lower than that of the Health Care
| EYPT | 46.02 Million | 5.39 |
| Sector | 742.91 Million | 86.95 |
| PLX | 65.49 Million | 7.67 |
In investing, the higher the risk, the greater the potential reward. Eyepoint Pharmaceuticals, with a current market valuation of $192.45 million, presents a mixed bag for investors. The company is grappling with significant losses, including an EBITDA of 96.6 million and a profit margin of -1.72. Despite a strong current ratio of 6.16, indicating good short-term financial health, its EPS estimates for the current year stand at a loss of 2.3, raising concerns about profitability. In contrast, Protalix Biotherapeutics may offer a more stable investment profile, making Eyepoint a riskier bet for those seeking immediate returns..
Are Eyepoint Pharmaceuticals technical ratios showing a come-back?
Eyepoint Pharmaceuticals has recently experienced a drop in its total risk alpha indicator to -0.31, sparking curiosity about its potential for price growth. This decline might indicate that the stock is currently undervalued, creating a possible opportunity for investors looking for a rebound. As the market processes this news, traders will be keen to see if Eyepoint can regain its momentum, making it a stock to watch in the upcoming weeks. Additionally, Eyepoint shows low volatility, with skewness at 0.53 and kurtosis at 0.54. Understanding these volatility trends can help investors better time their moves, especially during market fluctuations.
In bear markets, increased volatility can pressure Eyepoint's stock price, prompting investors to adjust their portfolios as values decline.Despite some recent challenges, Eyepoint Pharmaceuticals presents an intriguing investment opportunity. With a current market value of
9.16, the stock is trading well below its estimated value of
31.75, suggesting significant upside potential. Analysts are optimistic, with a strong buy consensus and several projecting a target price as high as
35.24. The company’s innovative approach to treating serious retinal diseases through its proprietary Durasert E technology positions it well for future growth. While there may be some short-term volatility, the long-term prospects appear promising, making Eyepoint a stock worth considering for those looking to invest in the biopharmaceutical sector..
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Eyepoint Pharmaceuticals. Please refer to our
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